WORK / STUDYSTUDENT LOANS

FURTHER YOUR EDUCATION WHILE IN FULL TIME EMPLOYMENT

Eligible Persons:

• Permanent employees who wish to continue their employment while pursuing studies. The study programme may not necessarily be related to their existing job. In addition, the aforementioned persons may also access funding under this programme to assist their spouse or child to pursue part-time or full-time study programmes.

Purpose/Use of Funds:

• Loans can be provided under this programme to finance up to 100% of tuition and all costs necessary for the pursuit of tertiary level studies (inclusive of professional, technical and vocational) up to and including PhD level.

Term:

• Loans up to $25,000.00 - Maximum of five (5) years.

• Loans in excess of $25,000.00 - maximum of ten (10) years.

Grace Period:

• Because persons would remain in their jobs while pursuing the programme, loans would not have grace periods therefore repayment would commence the month after first disbursement.

Interest Rate:

• 8.5% on loans not secured by tangible collateral.

• 7.5% on loans fully secured by tangible collateral.

Security:

• Loans up to a maximum of $25,000 may be given unsecured to persons with minimum job tenure of five years in their current job.

• Loans in excess of $25,000 but not exceeding $50,000.00 may be given with two unsupported guarantees.

• Loans in excess of $50,000.00 must be fully secured. Security can comprise any of the following or a combination:

1) Cash deposit

2) Assignment of shares from a reputable business institution

3) Mortgage on property

4) Any other collateral that may be deemed acceptable.

Loan Limits:

• Maximum loan – $50,000.00

• Loans in excess of $50,000 shall be considered under the Bank’s regular student loan scheme subject to the terms and conditions thereof.

Affordability:

• Affordability will be determined based on the income of the applicant(s). As a general rule loan repayment (all debts in excess of 1 year) should not exceed 40% of the gross income of the applicant(s). Loans may however be considered in excess of 40% debt servicing as follows:

• Relatively small loans repayable over a period not exceeding one year (12 months)

Where persons have schedule increase(s) that will reduce their debt servicing to 40% or less within one year of the scheduled repayment commencement date.

Disbursement:

• Disbursement will be done in keeping with the GDB’s regular disbursement guidelines. Payments of fees will be made directly to the university/institution.